Impact of ESMA on copying and leverage

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StankaLukas
52
StankaLukas  
Hello everyone! 

I have one question. How esma's decision affects copying and leverage when copying? Will it change and will it be very small even if the signal has huge leverage or it will stay the same as before?

Thank you for answers!
Eleni Anna Branou
Moderator
7108
Eleni Anna Branou  
StankaLukas:
Hello everyone! 

I have one question. How esma's decision affects copying and leverage when copying? Will it change and will it be very small even if the signal has huge leverage or it will stay the same as before?

Thank you for answers!

If the signal provider account changes to a lower leverage due to ESMA new regulations, then he/she will have to adjust trading accordingly and you will keep copying with the same ratio, since higher subscriber leverage doesn't affect copying ratio.

If your account change to a lower leverage, but the signal provider keeps a high leverage (because he/she is based in a country that is unaffected), then you will have a lower copying ratio than before.

If both signal provider account and your account change to a lower leverage, then the impact to copying process will be minimal if any.

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